According to the rational expectations hypothesis, an individual's assessment of future economic performance

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The rational expectations hypothesis suggests that individuals base their expectations on both past economic performance and current monetary and fiscal policy. It assumes that individuals have access to all relevant information and use it to make rational predictions about the future. Therefore, both past performance and current policy are important factors in an individual's assessment of future economic performance. Choices A and B are incorrect because they suggest that past or current factors are ignored in the hypothesis, which is not the case. Choice C is incorrect because it suggests that only past performance is considered, which is not supported by the rational expectations hypothesis.

According to the Rational Expectations Hypothesis, an Individual's Assessment of Future